Performance Review as a Developing Process

From your research and your own experience, to what degree are Deming’s observations about performance management still true? How have some of these adverse outcomes been addressed in contemporary organisations? What HRM skills might be employed to avoid them?

It is seen that the argument against performance review was made a long time ago.  So, in this paper we will analyze that performance review is not only linked with appraisals but it is also a developing process that facilitates good communication, efficiency, effectiveness and also helps to achieve both long-term and short-term goals (Dhar, 2015). Performance review is a process of communication between employees and managers to create a proper understanding of organizational goals with the efforts of both employees and organizations performance. Managers and employees come together so that negotiation can be made in a performance agreement (Albrecht et al., 2015).

Performance review takes into consideration proper evaluation of the performance of the employees so that they can perform with more dedication. Managers of the organization also observe that the employees are working according to the expectation level of the company (Griffin and Moorhead, 2011).  When behavioral problems or performance issues are identified in the organizations then it is important to develop a performance improvement plan where managers will offer coaching and feedback to help the employees to achieve overall objectives (Atmojo, 2015). It is important for the employees to discuss with the managers so that development plan can give emphasis on development in a current job but can also enhance the ability to consider the responsibilities so that the organizational goals can be achieved easily (Cascio, 2018). So many organizations have taken into consideration proper communication process with the employees so that the views can be shared properly.

Performance review is done in once or twice a year that helps the managers and employees to improve and search for the solutions to the issues that hinder the capability of the employees to attain standards that are described in the agreement of performance.  The approaches that are used to conduct the process of performance review are a 360-degree evaluation, which is known as a multi-rater approach where feedbacks are taken from customers and top management (Brewster et al., 2016). Using pre-determined approach to measure the performance agreement also measures decisions so that the performance can be improved by the employees and also corrective decisions can be taken or human resource decisions like promotions, rewards, and transfers. To manage the performance of the company it is important that employees should be clear about goals and strategic mission so that they can complete their activities in a proper manner (Armstrong and Taylor, 2014).

Evaluation of Employee Performance and Importance of Communication

There are many methods that are used to review the performance of behaviorally based techniques in which the self-review is done of the employees that help to appraise the managers of the organization. Self-review analyzes the ability of the employee to conduct the activity of the organization (Kehoe and Wright, 2013). Next method is rating scale that is done by considering the behavior of the employees.  When the employees conduct the activities the rating is given by the top management so that they can conduct the activities properly. Next is a result based method that considers SMART goals or principles like sound, measurable, relevant, and achievable and also the balanced scorecard (Cameron and Green, 2015).

Figure 4: Source: Vaidyanathan, S. 2014, 360 Degree Performance Appraisal, Research Gate,

Effective performance management systems should be clear and well communicated so that performance management policies can be managed.  It also helps to ensure the clear objectives and the standards related to performance so that proper skills can be acquired by the employees. Proper performance management helps to offer proper timely and ongoing activities to the employees who want to achieve the desired results. If there is no proper performance management then the negative impact can be analyzed in profits and objectives of the company.

The underperformance of the employees can also be managed by having proper knowledge of the activities.  If the underperformance is managed effectively then the level of performance in the workplace can be improved and also the employees will feel motivated if they do not take the burden of the work. The burden of work can only be reduced by proper distribution of work between the employees of the organization. Negative attitudes of the employees should also be reduced so that positive outcome can be achieved by the employees who are given basic tasks of the organization (Mone and London, 2014).

Deming criticized performance appraisal by saying that it nourishes short-term performance, annihilates long-term planning, builds fear, demolishes teamwork and nourishes rivalry and organizational politics (Deming and Edwards, 1982).  It is also seen that Appraisals were not designed so that the performance can be improved but it is done to evaluate and rate the performance of the employees. Performance of the employees is rated in the organization and according to the rating the employees are given appraisal or increment in their salary. So to achieve increment in the salary it is important to give good performance and to achieve the targets in a proper way (Nuttin, 2014). These saying might be true in managing the performance and it can also achieve success through proper development to overcome the problems. The management theory and practice are evaluated by Fredrick W. Taylor.  The emphasis is on productivity so that proper implementation of knowledge transfer and monetary incentives can be identified (Hutchison and Huo, 2017).

Methods for Effective Performance Review

Taylor believed that if scientific methods like” one best way” are used then it can easily carry out the jobs. It gives clarity in the working structure of the employees. If there is clarity in the activities then the employees can complete it in a fast manner and also with efficiency.  He also divided jobs into many parts and trained workers so that they can perform effectively towards the assigned tasks. Training helps the employees to understand the work pattern in a proper manner so that the activities can be conducted smoothly and in a right direction (Dhar, 2015).

To enhance motivation it is seen that monetary incentives should be given to the workers so that production standards can be attained effectively. The employees of the organizations are not only motivated by offering money but they can also be motivated if basic needs are satisfied.  If basic needs are given by the organization then it can be easy for the employees to work with dedication towards the assigned activities. Communication also plays a great role so that teamwork, productivity can be enhanced properly (Miner, 2015). Performance appraisal is a process that takes place between the management and employees where they can come together so that objectives can be fixed, the performance can be reviewed and also the employees can be rewarded by analyzing their performance.  Goals of the organization are established by the top level management and the goals that are set will be communicated to every department so that the goals can be formed for each department.

Each and every employee will have to approach the top management so that the performance review can be conducted easily.  The employees will be accessed according to their goals. The meeting related to review is also held at end of the work cycle so that goals that are achieved can be evaluated effectively. The argument given by Deming against performance management is that “it nourishes short-term performance, annihilates long-term planning, builds fear, demolishes teamwork and nourishes rivalry and organizational politics. To analyze this argument it will be separated into two parts “Nourishes short-term performance annihilates long-term planning…”  By considering MBO approach it is seen that it has been valid. It is seen that the MBO approach emphasizes on short-term objectives instead of long-term planning. The top management would consider the methods so that goals can be achieved in less time (Kim, 2014).

Importance of Clear and Well-Communicated Performance Management Policies

 For instance: the situation will require more profits so to achieve it the managers will give training to their employees. Development in the management of the performance should be managed so that the issues can be overcome by considering balanced scorecard. 

The balanced scorecard is related to translate the organizational goals to the performance objectives, measures, and targets.  The scorecard is designed so that the performance objectives can be achieved and the strategic outcome can be measured. All the objectives no matter long or short can be considered so that the long-term goals of the organization can be achieved.  So by evaluating the cause and effect, the employees should set the goals that are aligned so that long-term goals can be achieved (Sparrow et al., 2016).

Now the division will be made of “….Builds fear, demolishes teamwork and nourishes rivalry and organizational politics”.  In the overall management of the performance, reviews take place once in a year by taking into consideration the capability of the individual so that the activities can be conducted smoothly.  The conflicts that take place within work teams are very common as every individual should focus on the objectives.  Managers do not have the belief that the workers who get low rating will be motivated so that they can perform better as punishments are the most effective tools of motivation. The workers under management with such mentality will worry about job security and will nervousness will be seen in the individual.  In the recent scenario, performance management has considered the format of performance appraisal as the companies move towards a team based environment (Pulakos et al., 2015).

Team goals are common and team members conduct the activities as an individual who collaborates with each other so that team goal can be achieved.  Group performance review is considered so that the objectives related to a team can be set and also the individual goals cannot be affected.

Teamwork helps the individual to assess the relation by considering the performance and the benefits achieved. Incentives of the groups like goal sharing and balanced scorecard give both monetary and non-monetary benefits.  As the emphasis is given on the goals of the individual the organizational politics would be reduced so that harmony at a workplace can be maintained so that overall goals and objectives can be accomplished (Shields et al., 2015).   Redefinition has taken place by considering performance reviews so that it can be positive and look forward to encourage the progress rather than enhancing fear that demoralizes the workers.  The aim of the performance review is to attain planning by revising the performance agreement, learning and development so that independent learning can be encouraged, communication as it is a two-way channel for the managers and employee to communicate in relation with the job expectations and work issues.

Managing Underperformance and the Role of Motivation

I am working in an advertisement company it is seen that until 2 years back we have quarterly performance review, where performance of all the employees of the organization would be evaluated.  However, we noticed that it was adversely impacted the performance of the employees because most employees were seen working hard for only a few day after the review. Two years back we decided to shift to a weekly performance system where performance review is done on every Saturday. After the implementation of this idea, improvement is seen in the working pattern of the employees.

So, human resource management skills that should be employed are Communication that can help the employees to share their views and feedback in a proper manner.  Human resource professionals have to communicate effectively to the top management so that they can give their suggestions and get the best advice to conduct the activities that are assigned to them. Next is the problem-solving skill which should be there for every employee of the organization so that they can easily conduct the activities of the organization in a correct direction. Multitasking skill should also be there in the employees of the organization so that they can conduct the activities when some are not present (Pinto, 2015). Nest skill is related to dual focus that should be there so that decisions can be taken in a correct way to explain the information of the company.  Last skill that should be there is change management in which the employees should be capable enough to accept and manage change of the organization. These skills will help the employees to accomplish the overall objectives of the organization in an effective manner (Marchington et al., 2016).

Performance management is a process of management that takes into consideration objective setting, execution, emerging and performance review. This process of management is accepted universally. By considering many other successful schemes there is also a bound to be an individual who accepts and also there is some criticism of the process of management.  There is no perfect system.   The argument discussed in the paper was made many years ago. With proper execution of the balanced scorecard, ongoing training and feedback, and the team performance review had positively overcome those matters. So, in conclusion, it is seen that the argument that is made against performance management is not true by considering the recent scenario.

References

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